Mastercard (MA) Ties Up For Easy Digital Remittances Via Lulu App
Mastercard Incorporated MA recently collaborated with UAE-based financial services provider, Lulu Exchange, in a bid to enable seamless, safe and accelerated remittances through the Lulu Money mobile app for UAE customers. As part of the tie-up, both the companies remain committed to collectively rolling out digital payment solutions and technologies to harness growth prospects of the digital economy.
The alliance marks the first instance wherein an exchange house in the UAE facilitated usage of debit cards, while conducting digital payments through its payments app. Thus, Mastercard debit cards can be utilized for transactions with no additional merchant transaction fees.
Lulu Exchange, empowered by Mastercard’s Cross-Border Services, will effectively process the cross-border payments and extend the same anywhere across the world. To facilitate faster and secured remittance transactions, the multi-rail processing interface Mastercard Payment Gateway Services (“MPGS”) will be put to use.
The latest move highlights Mastercard’s sincere efforts to strengthen presence across the UAE. The country seems to be an attractive market for Mastercard, given the widespread digital penetration and increased smartphone usage. With roughly 80% of the country’s digital payments being contactless, a top UAE government official reiterated the importance of AI and digital payments in boosting the nation’s digital economy growth. The same source cited that the digital economy of the UAE is anticipated to double itself in the course of the next decade.
Case in point, Mastercard collaborated with several well-established organizations of the UAE and has undertaken significant investments for upgrading digital capabilities and capitalizing on the growth of the country’s digital economy. The company’s remittance platform aims to play a key role in facilitating digital money transfers and boosting connectivity for its worldwide customers with their families and loved ones. Digital money transfers, which can be executed rapidly and at lower costs, are of utmost importance amid the ongoing pandemic.
This digital initiative in the UAE is a time-opportune one as well. Per a recent World Bank report, the UAE ranked second with respect to remittance outflows throughout the world in 2020. Earlier the World Bank predicted a drop in remittances this year. However, presently, remittances are expected to contribute to the global recovery of the economy, which is underway. Significant fiscal stimulus packages and inclination toward adopting digital means will keep encouraging consumers to engage in increased remittances in the days ahead.
Mastercard has always tried to revolutionize the payments landscape and promoted rapid adoption of digital means. It has been pursuing collaborations with several global and local financial service providers, which are aimed at bolstering its digital services portfolio, facilitating enhanced management of global payments and boosting global footprint. The company aims to bring more customers, merchants, government institutions and financial service providers under the ambit of a growing digital economy.
Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 3.9% in a year against the industry’s decline of 4.5%.
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Stocks to Consider
Some better-ranked stocks in the financial transaction services space include EVERTEC, Inc. EVTC, Visa Inc. V and The Western Union Company WU. While EVERTEC sports a Zacks Rank #1 (Strong Buy), Visa and Western Union carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EVERTEC, Visa and Western Union have a trailing four-quarter earnings surprise of 28.42%, 9.03% and 7.08%, on average, respectively.
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